Starting a cleaning business in the United States requires precise mastery of how the business model operates and the industry projections. Also, you need to be particular about the type of cleaning business you intend to start.
This article provides clarity on how to kick off your first cleaning business from scratch in the United States.
1. What Type of Cleaning Service Do You want to Offer?
Have you decided on the type of cleaning service to offer your target customers in America? Is it going to a dry cleaning/laundry business or a home cleaning service?
Decide on the type of cleaning business you want to establish because that will help you gain in-depth market insights based on the next factors to consider below.
2. Research the Market
Here are some critical factors to consider when making your market analysis:
Depending on the type of cleaning service, you may have different kinds of customer preferences. For example, if you run a dry-cleaning service, customers can either visit your shop or go to their homes to pick up and drop off the clothes.
In the case of home cleaning, you will most likely visit the homes of your customers. Although, some customers may want to stay behind until you are through with the cleaning.
Decide on a Location or Market Segment
Picking the location is very important because the needs of the target customers in that area tend to be pertinent to the success of your cleaning business. For example, a location that has more customers will guarantee your business more jobs and revenue than one with only a few customers.
Other factors to consider when breaking down your ideal target market are:
- Provide viable transportation services for your staff, such as a commuter bus or ride-sharing so they can get to your customers on time.
- How many persons living in the location are most likely going to patronize your cleaning business?
3. Gain Experience
How knowledgeable are you about the type of cleaning business you want to offer? Can you handle the equipment? Would you be able to troubleshoot issues when they come up? At worst, get yourself acquainted with how to run the business like you had no staff. This can come in handy when you have more orders to process and only a few employees to come to the rescue.
The core areas to focus on when gaining experience are:
Learn how to operate or use the relevant equipment used for the cleaning business.
Take professional courses on handling customers. There are times when the clients may request to speak with the business owner. Knowing how to attend to their needs and tackle any objections can help you win more clients.
4. Create Your Business Entity
Understandably, you want to start your cleaning business on a small scale. Creating a business entity readily comes in handy, as it makes it possible for your business to start on the right foot.
Some business entity options to choose from are:
- Sole proprietorship
- Limited Liability Company (LLC)
Learn more about business entities by reading the suggested articles below:
- How to Build Strong Brands in Today’s Competitive Business Environment in 5 Easy Ways
- 7 Things Experts Consider When Creating a Business Logo
- Infographic: 6 Aspects of a Branding Strategy of Successful Businesses
5. Write Your Cleaning Business Plan
A business plan is a blueprint or framework upon which your cleaning business is built. It is your steady guide to running the business – especially at the early stages.
The content of the business plan should include:
What is the opportunity or unique attributes of doing business in the desired location? This is the primary for starting your cleaning business.
Define the current challenges plaguing the target market. Highlight how the customers are not happy about not being able to access cleaning services because of these problems.
Unique Value Propositions (USPs)
Define your USPs or the factors that make your cleaning business better than your competitors. Try not to be overly promotional, but focus on the means through which your brand will bring more value into the cleaning business market in the target market.
Add information about how the financial aspect of your cleaning business will be utilized. This includes the sources of raising funds for the business, the use of funds, and the projected revenue your business will make within a specific time.
Additional expenses, such as staff payment and equipment acquisition costs should also be added.
6. Secure Funding for Your Cleaning Business
The business needs money to start – and this usually comes in the form of early-stage funding. Securing funds on time helps you to acquire the necessary equipment and settle the bills and fees relating to business registration and miscellaneous expenses.
Early-stage funds for your cleaning business can be raised in the following ways:
- Crowdfunding from friends, colleagues at your current workplace, or family members.
- Applying for a loan from the bank.
- If your local or federal government is offering a grant, apply and see if you will be shortlisted.
7. Register Your Cleaning Business
Get the business registered with the relevant authorities. Note that if you are not resident in the United States, you may be asked to register as a DBA – Doing Business As. This is common in cases when you don’t reside in the U.S. – or when you simply don’t want to use your legal name to register the business.
8. Acquire Business Equipment
Take a part of the funds you raised to purchase equipment for your cleaning business. You can take a professional with you to help pick the best equipment for the business. Don’t forget to register for insurance to protect both you and your employees from likely financial losses caused by damages to a client’s property when working with the equipment.
9. Obtain the Necessary Permits
Pay for the necessary permits and licenses that allow you to offer cleaning-related services in the state of your choice.
The Statista Research Department projects the dry cleaning services market to be worth over $5 billion by the end of 2025. Even if you are not starting a laundry service in the country, have in mind that cleaning is a huge business, considering that only a few Americans have the time to attend to basic household chores like cleaning. So, go ahead with the business plan and start your cleaning business in the United States. Provide quality service and you can be sure of being hired over and over again.